British Pound: Short-term downside bias toward 1.3265 against US Dollar – UOB

UOB strategists Quek Ser Leang and Lee Sue Ann report that GBP/USD rebounded to 1.3339 after a deeper-than-expected drop, easing immediate downside pressure and pointing to intraday range-trading between 1.3295 and 1.3350. Over 1–3 weeks, they retain a negative bias, looking for a move toward 1.3265 as long as the pair stays below strong resistance at 1.3365, despite a longer-term view of potential rebound toward 1.3480.

Pound consolidates but medium-term risk lower

"24-HOUR VIEW: GBP fell more than we expected two days ago, reaching a low of 1.3307. When it was at 1.3310 yesterday, we highlighted the following: “Despite declining, GBP has not gained much momentum. That said, there is scope for GBP to break below 1.3290. The next support at 1.3265 is unlikely to come under threat for now. To keep the momentum going, GBP must hold below 1.3335.” GBP subsequently fell to a low of 1.3274 and then rebounded strongly, reaching a high of 1.3339 in the NY session. The immediate downward pressure has eased, and today, GBP is likely to range-trade between 1.3295 and 1.3350"

"1-3 WEEKS VIEW: We turned negative on GBP yesterday (28 Oct, spot at 1.3310). We indicated that “the rapid increase in downward momentum has shifted the bias for GBP to the downside, likely toward 1.3265.” We added, “the downside bias will remain intact as long as GBP holds below the ‘strong resistance’ level, now at 1.3365.” We continue to hold the same view."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)